Altria profit misses by 2 cents as nicotine pouch sales decline

Altria Group reported second-quarter earnings that missed analyst estimates, as weaker sales of its nicotine pouches offset growth in the cigarettes business.

"The oral tobacco category faced headwinds in the quarter, with category volumes declining," Chief Executive Officer Billy Gifford said in a statement. "We remain focused on transitioning adult smokers to smoke-free products while maximizing our combustible cash generation."

Earnings per share came in at $1.48 for the three months ended June 30, below the $1.50 consensus estimate compiled by Bloomberg. Revenue was virtually flat compared with the same period a year earlier, the company said, without disclosing a specific dollar figure. The miss was driven by lower sales of on! nicotine pouches, which dragged on the oral-tobacco segment, while the Marlboro cigarette brand posted modest growth.

The results underscore the challenge facing Altria as it tries to balance declining cigarette volumes with its push into smoke-free alternatives. The company's oral-tobacco segment, which includes Copenhagen, Skoal and on! nicotine pouches, had been a key growth driver. The slowdown in nicotine pouch sales raises questions about the pace of Altria's transition strategy, particularly as competitors like Philip Morris International gain ground with their heated-tobacco products.

Altria shares fell 3.6% in pre-market trading to $72.24, extending a pullback from the stock's 52-week high of $77.06 reached earlier this month. The stock had rallied 30% year-to-date through Wednesday's close, supported by the company's $1.06 quarterly dividend — which yields 5.7% — and its $2.4 billion in share repurchases during the first half of 2026.

The company narrowed its full-year 2026 earnings guidance to a range of $5.10 to $5.20 per share, from a prior outlook of $5.05 to $5.25. The updated forecast implies modest growth from the $5.01 earned in 2025 but suggests management sees limited upside from current trends.

For investors, the key question is whether the nicotine pouch weakness is a temporary blip or the start of a broader slowdown in Altria's smoke-free growth story. The company's next major catalyst is the third-quarter earnings report in October, which will show whether oral-tobacco volumes have stabilized.

This article is for informational purposes only and does not constitute investment advice.